VirnetX Holding Corporation is asking for $532 million from Apple for using patented technology for communication services like FaceTime, iMessage and more, the firm told a federal jury today, according to Bloomberg.

virnetx

“Apple hasn’t played fair. They have taken Virnetx’s intellectual property without permission,” VirnetX lawyer Brad Caldwell of Caldwell Cassady told the jury in Tyler, Texas.

Greg Arovas, Apple's lawyer, said that Apple believes in "fairness and protecting intellectual property," noting that VirnetX "keeps moving the boundary" and asking for "more and more and more" money. In 2012, the firm was awarded $368 million in a jury trial. However, the decision was thrown out in 2014 as the verdict was influenced by the instructions given to the jury during the trial.

The patent suit can be traced back to 2010 over a pair of patents related to virtual private networking (VPN) connectivity. This retrial, which will last through next week, will largely focus on whether any VirnetX patents are infringed in either FaceTime or iMessage. Apple was already found to be infringing the patents with its VPN On Demand service. Apple cannot make the same arguments they made in the first trial, however.

VirnetX makes a majority of its revenue on patent licensing. Arovas said that, on a per-unit basis, VirnetX's $200 million settlement with Microsoft over similar violations is less than a tenth of what its currently seeking against Apple.

Top Rated Comments

BrodieApple Avatar
106 months ago
Patent trolls
Score: 7 Votes (Like | Disagree)
MH01 Avatar
106 months ago
Cue the Apple haters in 3...2...1...
cue the first trolling comment in.....1

You might want to read the article, not much love on MR for patent trolls.
Score: 5 Votes (Like | Disagree)
oneMadRssn Avatar
105 months ago
Patent company shells should be illegal. Either you use your patents to build something, you license them out at a fair price or you sell them to a company which complies to these previous rules.

What we must not forget that many of these trials are perfectly orchestrated by law 'engineers' with a hidden agenda. While the law might be quite the matrix for most of us, the techniques they use in the end, look baffling easy.

In these reigns where stakes are unbelievably high, many things don't look like they are. It's well possible that a patent troll sueing company X is in fact somewhere owned by company X.
I don't think this company is breaking you proposed "rules" at all.

First, isn't litigation a way of achieving the "license them out at a fair price" principle you want? How do you get someone to pay anything at all without being willing to enforce the law? Without threat of litigation, nobody would pay anything.

Second, what about universities and the patent portfolios they develop from their research labs? Often licensing pays for future research grants, but sometimes litigation is needed to get those that refuse to pay at all.

Third, what about financiers? We need investors (venture capital, or otherwise) to invest in startups. Since often startups don't work out, they need some collateral to secure their investment. Often IP is the only asset small startups have to offer. Shouldn't the investors be able to recoup some of their losses in that scenario by licensing, and litigating where needed, that IP?
Score: 3 Votes (Like | Disagree)
Devie Avatar
106 months ago
Patents are obviously very important, but you should not be able to patent such broad or basic ideas

Or I should patent the method of putting pants on and sue everyone
Score: 2 Votes (Like | Disagree)
Kajje Avatar
106 months ago
Patent company shells should be illegal. Either you use your patents to build something, you license them out at a fair price or you sell them to a company which complies to these previous rules.

What we must not forget that many of these trials are perfectly orchestrated by law 'engineers' with a hidden agenda. While the law might be quite the matrix for most of us, the techniques they use in the end, look baffling easy.

In these reigns where stakes are unbelievably high, many things don't look like they are. It's well possible that a patent troll sueing company X is in fact somewhere owned by company X.
Score: 2 Votes (Like | Disagree)
4jasontv Avatar
105 months ago
What? Could you explain this to me? I mean, I guess I get that a subsidiary could sue another subsidiary, but...why?
I'm not really familiar with the case, but I can justify the comment. Let's say you own two companies, X and Y. X sues Y for an absurd amount, and you tell the people at Y not to fight it. X wins. Now you approach companies A, B, and, C and say look what the courts say is "fair". We only want payout * 30%. If you fight them you risk going against precedent and paying a higher rate. They might even get special treatment because they did t try and gouge you at first.
Score: 1 Votes (Like | Disagree)

Popular Stories

General Apps Messages

Apple Announces 'Groundbreaking' New Security Protocol for iMessage

Wednesday February 21, 2024 6:00 am PST by
Apple today announced a new post-quantum cryptographic protocol for iMessage called PQ3. Apple says this "groundbreaking" and "state-of-the-art" protocol provides "extensive defenses against even highly sophisticated quantum attacks." Apple believes the PQ3 protocol's protections "surpass those in all other widely deployed messaging apps," according to its blog post:Today we are announcing...
iOS 17

iOS 17.4 Will Add These New Features to Your iPhone

Monday February 19, 2024 6:52 am PST by
Apple last month confirmed that iOS 17.4 will be released in March, and the update includes several new features and changes for the iPhone. Key new features in iOS 17.4 include major App Store changes in the EU and Apple Podcasts transcripts. The update also adds new emoji and includes preparations for the launch of next-generation CarPlay later this year. More details about the new...
Beyond iPhone 13 Better Blue Face ID Single Camera Hole

Six Reasons to Wait for Next Year's iPhone 17

Thursday February 22, 2024 4:20 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models concurrently, which is why we sometimes get rumored feature leaks so far ahead of launch. The iPhone 17 series is no different, and already we have some idea of what to expect from Apple's 2025 smartphone lineup. If you plan to skip...
samsung galaxy ring

'Apple Ring' Allegedly in Development to Rival Samsung Galaxy Ring

Tuesday February 20, 2024 2:27 am PST by
Apple is speeding up development of a smart ring that can be worn on the finger to track users' health biometrics, claims a new report coming out of Korea. Teaser image of Samsung Galaxy Ring shown at Galaxy Unpacked in January Apple has toyed with the idea of a ring wearable for several years, as indicated by several patents, but with Samsung preparing to bring its own product to market, the ...
volvo s60 drivers apple maps

iOS 17.4 Beta Adds CarPlay Option to Show Upcoming Maneuvers in Instrument Cluster

Tuesday February 20, 2024 10:47 am PST by
The fourth beta of iOS 17.4 that Apple released today adds a new CarPlay feature, according to the notes that Apple provided to developers. In supported CarPlay vehicles, there's now an Apple Maps option to show information about upcoming maneuvers in the instrument cluster. CarPlay users will be able to swap the display type between the main and instrument cluster by tapping on the map...
Oled iPads and MackBook Pro Notch

Apple's OLED Roadmap: New iPad Mini, Foldable iPad Pro, and More

Wednesday February 21, 2024 5:29 am PST by
Apple is planning to launch at least nine new devices with OLED displays across the iPad and MacBook product lines, according to an updated forecast from research firm Omdia that sets out the company's plans in detail. As widely rumored, Apple's push to transition to OLED will apparently be jump-started by the release of new 11- and 13-inch iPad Pro models this year. The displays will...
iPad Pro OLED Feature 2

Apple's Upcoming OLED iPad Pro Models Rumored to Be Much Thinner

Tuesday February 20, 2024 1:39 pm PST by
Apple is planning to update the iPad Air and iPad Pro lineups as soon as March, and the new iPad Pro models will be significantly thinner according to dimensions shared by 9to5Mac. Citing sources with knowledge of Apple's plans, the site claims that the larger version will be more than 1mm thinner. The current 12.9-inch iPad Pro measures in at 6.4mm thick, but the new model is said to be 5mm ...
Next Generation CarPlay Porsche 1

Apple Launching Next-Generation CarPlay This Year With These New Features

Wednesday February 21, 2024 2:03 pm PST by
Apple recently updated its website to confirm that the first vehicle models with next-generation CarPlay support will debut "in 2024." This wording is shown on Apple's regional websites for the U.S., Canada, Australia, New Zealand, and many other countries. The iOS 17.4 beta includes code-level references to eight new CarPlay apps:Auto Settings: This app will let you manage paired iPhones...